Key Business Functions: Lesson 2+

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Explore the six key business functions - human resources, financial, operations, marketing, information, and risk management. Understand how these functions synergize to manage a business efficiently. Identify the roles and importance of marketing, information, and risk management in business operations.


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Key Business Functions: Lesson 2+

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  1. Key Business Functions Key Business Functions Lesson 2 Lesson 2 Form 4 Accounting Strand

  2. TABLE OF TABLE OF CONTENTS CONTENTS Recall prior knowledge in the previous lesson Teaching Part 5: Information management Formative assessment: 5 MCQs Teaching Part 4: Marketing management Teaching Part 6: Risk management

  3. 01 01 Recall Prior Recall Prior Knowledge Knowledge

  4. Recall memories: Key Business Functions Recall memories: Key Business Functions 1. 1. What are the six business functions? human resources, financial, operations, marketing, information and risk management What are the six business functions? 2. 2. How do these functions work in managing a business? How do these functions work in managing a business? 3. 3. Which three key business learned the detail? Which three key business functions we learned the detail? functions we have not yet have not yet

  5. Key Business Functions Key Business Functions Six Key Business Functions: - - - - - - Six Key Business Functions: Human Resources Management Financial Management Operations Management Marketing Management Information Management Risk Management Human Resources Management Financial Management Operations Management Marketing Management Information Management Risk Management

  6. Lesson Objectives Lesson Objectives 1. 1. Identify the roles and importance of the key business functions: marketing, information and risk management Identify the roles and importance of the key business functions: marketing, information and risk management

  7. 02 02 Teaching Part 4: Teaching Part 4: Marketing Management Marketing Management

  8. Part 4: Marketing Management Part 4: Marketing Management 1. 1. As a customer, what are your concerns during As a customer, what are your concerns during consumption? consumption? 2. 2. Do you think a business like Tai Hing Group will have the Do you think a business like Tai Hing Group will have the same concerns? Why? same concerns? Why? Yes, Tai Hing Group will have the same concerns to keep profit making for the company. 3. 3. How does a business like Tai Hing Group address the How does a business like Tai Hing Group address the customers concerns? customers concerns? Tai Hing may adjust price, product, location, and etc. to meet the customers needs.

  9. Part 4: Marketing Management Part 4: Marketing Management Marketing management is the process of executing than competitors to make profits It helps a company provide and earn money for itself in return. Key functions of marketing management: - - position - - - Marketing management is the process of identifying executing marketing strategies. A company can meet those needs with its goods and/or service better identifying customers needs and customers needs and marketing strategies. It helps a company provide goods and earn money for itself in return. Key functions of marketing management: Conducting marketing research Segmenting the market, selecting target markets and determining market Formulating market strategies Implementing and controlling marketing activities Managing customer relationships goods or or services services that can satisfy customers needs that can satisfy customers needs

  10. Key functions of marketing management Key functions of marketing management Conducting marketing research - - evaluate the company s marketing performance - - preferences To obtain market information to identify customers needs, forecast customer demand and explore market opportunities and deal with threats E.g. Tai Hing Group collects sales data to identifies customers

  11. Key functions of marketing management Key functions of marketing management Segmenting the market, selecting target markets and determining market position - Divide the market into smaller segments with distinct needs, characteristics and consumption patterns - Evaluate the attractiveness of the segments and select market(s)/subgroup(s) to serve - - Positioned as a multi-brand casual dining restaurant group Targeted the general public Determine the company s market position E.g. Tai Hing Group

  12. Key functions of marketing management Key functions of marketing management Formulating market strategies - To satisfy customers needs and deal with the competition, the marketing department needs to formulate marketing strategies - The Marketing mix, also known as the four P's of marketing, refers to the four key elements: product, price, place and promotion. Determine the goods or services the company offers to satisfy its target customers needs Determine the amount of money target customers need to pay to obtain the product Place customers Determine the kind of activities needed to communicate the product s features and merits to target customers and to persuade them to buy the product Product Product Price Price Determine how to make the product available to target Place Promotion Promotion

  13. Part 4: Marketing Management Part 4: Marketing Management 4 Key Elements of Marketing a Product/Service Key Elements of Marketing a Product/Service Product Tai Hing Group launched different brands which offer different catering services E.g. TeaWood-Taiwan cuisine, Tai Hing- Siu Mei, Asam Chicken Rice-Southeast Asian cuisine, Pho Le-Vietnam cuisine). Canned products are developed Place Tai Hing restaurants are located in some shopping malls and provides online ordering service 4 Product Pricing Pricing - - - Position: multi-brand casual dining restaurant group Target customers: general public Comparable to other restaurant groups (e.g. Maxim s Group) - - Place Promotion Promotion - - Tai Hing invites celebrities to film the TV commercials Men Wah Bing Teng launched limited edition drinks -

  14. Group discussion: Marketing Management of Group discussion: Marketing Management of Nissin Group Nissin Group Instructions: 1. 1. Divide into groups with 5 students 2. 2. Find out the 4Ps of the Nissin Group. 3. 3. After discussion, students from each group are invited to Instructions: Divide into groups with 5 students each Find out the 4Ps of the Nissin Group. After discussion, students from each group are invited to stick each stick their discussion results on the blackboard. their discussion results on the blackboard.

  15. Extract B Extract B Extract A Extract A Extract C Extract C

  16. Group discussion: Marketing Management of Nissin Group discussion: Marketing Management of Nissin Foods Group Foods Group Product Nissin Foods Group produces different types of instant noodles including cup noodles, ramen, rice vermicelli, macaroni; local tastes are developed Product Pricing Pricing - - - - Position: provide safe, convenient and delicious food product Target customers: general public Comparable to other instant noodles Place Place Promotion Promotion - Nissin noodles can be easily bought from supermarkets, convenience stores and retail shops - Launched new flavors with special packaging Launched a membership program via a mobile app -

  17. Key functions of marketing management Key functions of marketing management Implementing and controlling marketing activities - Turn marketing plans into action by working with stakeholders inside and outside the company, e.g. working out the advertisement with the marketing department and advertising company - Monitor and evaluate the marketing results by using different measuring tools, e.g. questionnaire surveys and interviews - Ensure that the marketing activities are conducted as planned Managing customer relationships - - customers and enhance customer loyalty - customers preferences to enhance customer relationships Maintain good relationships with customers Help the company to attract new customers, retain existing E.g. Tai Hing Group developed a mobile app to understand

  18. 03 03 Teaching Part 5: Teaching Part 5: Information Management Information Management

  19. Part 5: Information Management Part 5: Information Management 1. 1. Make a guess, which restaurants do you think are the top three revenue contributors of the Tai Hing Group? 2. Can the business make decisions just by guessing the performance of different brands? No, they have to collect data from the customers to understand their preferences so as to make marketing decisions. Make a guess, which restaurants do you think are the top three revenue contributors of the Tai Hing Group? 2. Can the business make decisions just by guessing the performance of different brands? 3. How can the Tai Hing Group collect sales data? They can record the sales of each brand through daily operations, conduct survey of customers... 3. How can the Tai Hing Group collect sales data? 4. After collecting the data, how 4. After collecting the data, how would would you make use of them? you make use of them?

  20. Part 5: Information Management Part 5: Information Management Information management is the process of storing operations and decision Key functions of information management: - - departments - communication Information management is the process of gathering storing and operations and decision- -making. Key functions of information management: Storing, processing and managing business transaction data Setting up and maintaining information systems to support other gathering, , processing processing, , and distributing distributing information to support a company s making. information to support a company s Setting up and maintaining network systems to facilitate

  21. Business segment analysis of Business segment analysis of Tai Hing Group Tai Hing Group Extracted from: Tai Hing Group Holdings Limited (2023, March 16). 2022 Interim Report. https://moebius.asia/Documents/company/reports/listedco/listc onews/sehk/2022/0923/2022092300825.pdf. According to the sales data of Tai Hing, TeaWood and Men Wah Bing Teng were the three largest revenue contributors of Tai Hing.

  22. Information Management of Tai Hing Group Information Management of Tai Hing Group Tai Hing Group was developing a mobile app for customers to order online and collect sales data in order to improve the customer relationship management (e.g. attract potential customers and enhance customers loyalty) Extracted from: Tai Hing Group Holdings Limited (2023, March 16). 2022 Interim Report. https://moebius.asia/Documents/company/reports/listedco/listconews/sehk/2022/0923/2022092300825.pdf.

  23. Key Functions of Informantion Management Key Functions of Informantion Management Storing, processing and managing business transaction data - Develop/adopt a system that can store, process and manage business transaction data resulting from daily operations - Process and analyse data to become information Storing, processing and managing business transaction data E.g. Tai Hing Group collected sales data and transformed it into segment information like revenues generated from each brand, brand coverage and awareness so as to help making marketing decisions for the future development of the Group

  24. Key Functions of Informantion Management Key Functions of Informantion Management Setting up and maintaining information systems to support other departments - Set up and maintain the company s information systems - Allow other departments to obtain reliable and timely information which can aid their decision-making E.g. Marketing management of Tai Hing can make marketing decisions according to the collected sales data (attract potential customers and enhance customers loyalty) Setting up and maintaining information systems to support other departments Setting up and maintaining network systems to facilitate communication - Set up and maintain network systems for communication - Intranet and email system for internal communication, an online storage space for file sharing E.g. Tai Hing will publish the latest news and information on their intranet Setting up and maintaining network systems to facilitate communication

  25. 04 04 Teaching Part 6: Teaching Part 6: Risk Management Risk Management

  26. Part 6: Risk Management Part 6: Risk Management 1. 1. From 2019 to 2021, what major challenge did the catering service providers face? Because of the COVID-19, restaurants in Hong Kong had to follow the pandemic prevention policies adopted by the Health Department of Hong Kong. For example, the opening hours and the number of customers are restricted. From 2019 to 2021, what major challenge did the catering service providers face? 2. Besides the challenge mentioned above, what kinds of risk can you think of when running a business? Fire, robbery, occupational injuries of employees... 2. Besides the challenge mentioned above, what kinds of risk can you think of when running a business?

  27. Part 6: Risk Management Part 6: Risk Management Risk management is the process of company s exposure to various types of risk and developing measures to Risk management is the process of identifying company s exposure to various types of risk and developing measures to minimise identifying and and assessing assessing a a minimise losses. losses. Key functions of Risk Management: - - Key functions of Risk Management: Identifying and measuring risks Controlling risks

  28. Key functions of risk management Key functions of risk management Identifying and measuring risks - Identify the possible risks that the company faces and assess the company s exposure to the risks - A company may face various types of risks such as: fires, death or injuries of employees, thefts, machine breakdowns, labour strikes, lawsuits against the company and natural disasters Identifying and measuring risks

  29. Risks faced by Tai Hing Group Risks faced by Tai Hing Group 1. 1. COVID - the industry severely. The business operation under the pandemic can be risky to the health and safety of employees and customers. - restaurants will have to close down to avoid mass infection, and further affect social stability. 2. 2. Workplace injuries - risk workplace injuries - Employees Compensation Ordinance. The cost will be increased if there are any workplace incidents. COVID- -19 pandemic The pandemic prevention measures affected the normal operations of 19 pandemic If employees or customers are infected, the relevant branded Workplace injuries If the employees are careless or lifting heavy items improperly, they may The Group has to pay compensation to the employees according to the

  30. Lets think! Let s think! 1. After we identified the two risks for Tai Hing, what would you do? Will ensuring good hygiene and safe workplace increase the cost of production? How can a company strike the balance between compliance with responsibilities and the profitability of a business? When the business fulfils its responsibilities on food hygiene and workplace safety, the corporate image can be improved which might bring profit. 2. Yes, the cost will increase. 3.

  31. Key functions of risk management Key functions of risk management Controlling risks - Formulate risk management strategies and choose the most appropriate measures to control and manage the risks - Companies can use four major risk management strategies to control risks: risk assumption, risk reduction, risk avoidance and risk transfer Controlling risks

  32. Part 6: Risk Management Part 6: Risk Management - - Methods to control risks control risks 1. Risk assumption - of money to cover potential losses 2. Risk reduction - or reducing the size of the loss 3. Risk avoidance - would cause a loss 4. Risk transfer - insurance or contractual agreements) Methods to 1. Risk assumption Bearing or retaining the risk of loss by setting aside an amount 2. Risk reduction Reducing the risk of loss by preventing the loss from happening Risk avoidance Eliminating the risk of loss by not engaging in activities which Risk transfer Transfer the risk of loss to another party (often through

  33. Part 6: Risk Management Part 6: Risk Management - - Methods to control risks Methods to control risks How could Tai Hing Group control the risk? 1. 1. Risk assumption: Management and the Pandemic Prevention Team to closely monitor the pandemic situation and adjust the response strategies in a timely manner. Provision of funds to cope with additional expenses caused by the epidemic How could Tai Hing Group control the risk? Risk assumption: Established Committee on Emergency 2. 2. Risk reduction: with hygiene and pandemic prevention guidelines and pandemic prevention equipment, comply with pandemic prevention measures required by the government Risk reduction: provide departments and branded restaurants

  34. Part 6: Risk Management Part 6: Risk Management - - Methods to control risks Methods to control risks How could Tai Hing Group control the risks? How could Tai Hing Group control the risks? 3. Risk avoidance: use lift machine instead Risk avoidance: do not require employees to lift heavy items, 4. Risk transfer: transfer risks of employees getting injured at workplace to the insurance company Risk transfer: take out employees compensation insurance to

  35. Case Study Case Study Fanny is a senior administrative officer of a company, and her daddy, Mr Wong is the owner of a design company. Fanny s company recently decided to re-design and renovate the entrance of the company, so Fanny was appointed to select a design company to be responsible for the renovation. Due to the tight renovation schedule and budget, Fanny simply selected his Daddy s company as the contractor. What are the possible risks in Fanny s company if the company allows Fanny to do so? Any suggestions for Fanny s company to avoid and/or manage such risk(s)?

  36. 05 05 Formative Formative Assessment: MC Assessment: MC Quiz Quiz

  37. Formative Assessment: MC Quiz Formative Assessment: MC Quiz You have already learnt the six key business functions. Let s scan the QR code and enter the game room to answer five multiple choice questions! Link: https://create.kahoot.it/share/formative-assessment-key-business- functions/34174d1f-c8fc-49b2-b527-c1adf64e966f

  38. Multiple Multiple- -Choice Questions Choice Questions 1. In order to reduce the risk of theft, the management of a commercial building decided to hire two more security guards. Which of the following business functions does this involve? (1) Human Resources Management (2) Marketing Management (3) Risk Management A. Only (1) B. Only (3) C. (1) and (3) only D. (1), (2) and (3)

  39. Multiple Multiple- -Choice Questions Choice Questions 2. Happy Company intends to recruit an employee. This employee will be responsible for finding new target customers and maintaining contact with them. The employee will most likely work in the ____________ department. A. human resources B. marketing C. operation D. finance

  40. Multiple Multiple- -Choice Questions Choice Questions 3. A bank recently redesigned the layout of its branches. Seeing that there are more and more high-net-worth customers, the branch will use 70% of its space to set up special counters to receive these customers. Comparatively, this redesign project is closely related to all the following management except ____________ management. A. risk B. finance C. operation D. human resources

  41. Multiple Multiple- -Choice Questions Choice Questions 4. A mall will hold a workshop to teach employees how to use a defibrillator. When a customer suffers a heart attack, the staff can use a defibrillator to provide first aid to them. Which of the following business functions are involved in hosting this workshop? (1) Human Resources Management (2) Financial Management (3) Information Management (4) Risk Management A. Only (4) B. (1) and (3) only C. (1) and (4) only D. (1), (2), (3) and (4)

  42. Multiple Multiple- -Choice Questions Choice Questions 5. A garment factory decided to build a new factory in Vietnam to reduce costs. Which of the following business functions are involved in this decision? (1) Human Resources Management (2) Financial Management (3) Operations Management (4) Risk Management A. (1) and (4) only B. (2) and (3) only C. (1), (2) and (3) only D. (1), (2), (3) and (4)

  43. 06 06 Conclusion Conclusion

  44. Key points of the lesson: - risk management - information and risk management - human resources, financial, operations, human resources, financial, operations, Key points of the lesson: Functions and importance of marketing, information and risk management Examples of how the Tai Hing Group adopt marketing, information and risk management In sum, the 6 Key Business Functions are In sum, the 6 Key Business Functions are Functions and importance of marketing, information and Examples of how the Tai Hing Group adopt marketing, marketing, information, risk management marketing, information, risk management

  45. References: 1. Chan, R. & Pak, C.K. (2022). NSS BAFS Business Management 2 (Elective Part) (3rdEd.). Pearson. 2. Ho, K.W.P., Tsui, S.C.L. (2014). BAFS in the New World 1: Business Environment & Introduction to Management (2ndEd.). Hong Kong: Pilot Publishing Company Ltd. 3. So, R., Kwok, R. & Yip, K. (2019). New Horizon Business, Accounting and Financial Studies: Business Environment and Introduction to Management. Hong Kong Educational Publishing Company. 4. Ho, K.W.P., Tsui, S.C.L. (2014). BAFS in the New World 1: Business Environment & Introduction to Management (2ndEd.). Hong Kong: Pilot Publishing Company Ltd. 5. Tai Hing Group Holdings Limited (2023, March 16). 2022 Interim Report. https://moebius.asia/Documents/company/reports/listedco/listconews/sehk/2022/0923/2022092300825.p df. 6. Tai Hing Group Holdings Limited (2023, March 16). Tai Hing Official Website. https://www.taihing.com/?route=home#home-banner

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